Samsung, the world's largest smartphone maker, says earnings in the third quarter likely dropped to their lowest level in nearly three years.

In a statement, Samsung estimated operating profit for the quarter ending in September was $3.8 billion. That is down nearly 60 percent from last year.

Third quarter sales also plunged an estimated 20 percent, to $44.2 billion.

Samsung has struggled to keep up with competition from Apple's new iPhones, which have larger screens, and from cheaper Chinese smartphone makers, such as Huawei and Lenovo.

Samsung profits and revenues

The South Korea-based company said it expects continued "uncertainty" in the mobile phone business, but hopes sales will improve with its new line of smartphones.

Samsung last month moved up the release of its oversized Galaxy Note 4 smartphone and the put the device on sale in China, getting an early start on Apple's iPhone 6, which has not yet hit the Chinese market.

Many investors do not seem to be rattled by the news. Samsung share prices ended the day up nearly 1 percent.